The article clarifies the concept of value for customer, demonstrates challenges related to the concept itself and its measurement and sheds new light on the consequences of conceptual and metric choices. The analysis focuses on three points: first, it shows, how the definition and delineation...

We provide an axiomatic approach to a belief formation process in an informational environment characterized by limited, heterogenous and differently precise information. For a list of previously observed cases an agent needs to express her belief by assigning probabilities to possible outcomes....

An agent wants to derive her belief over outcomes based on past observations collected in her database (memory). There is well establish evidence in the psychology and marketing literature that agents consistently fail (or choose not) to process all available information. An agent might be...

This paper experimentally studies the role of associative memory for belief formation. Real-world information signals are often embedded in memorable contexts. Thus, today's news, and the contexts they are embedded in, may cue the selective retrieval of similar past news and hence contribute to...

We measure which past experiences determine investors' expectations about the market's future Sharpe Ratio. We first introduce a simple method to recover individuals' subjective Sharpe Ratios from a rich source of survey microdata. These subjective expectations are procyclical, extrapolative,...

In this paper, we first model the dynamics of an economy, making use of a simple, almost trivial circular flow analysis. Then, we demonstrate the effects of keeping up with the Jonesesʺ as well as of keeping ahead of the Smithsʺ in private consumption and the role of innovation and imitation...

Unfair intentions provoke negative reciprocity from others, making their concealment potentially beneficial. This paper explores whether people hide their unfair intentions from others and how hiding intentions is itself perceived in fairness terms. Our experimental data show a high frequency of...

Personal autonomy has been argued to be fundamental to well-being and is often discussed as an important driver of economic and political behavior. Yet, preferences for autonomy are not well understood, because their identification requires the separation of instrumental value attached to...

In his paper Emotion and reasoning in human decision-making (Economics Discussion Papers, No 2019-8) Edmund Rolls points out that multiple and independent types of reinforcement exist in the human brain, and that they cannot be reduced to a common currency. The present commentary introduces...